SMU Founder John Packard Discusses Domestic & Foreign Steel Pricing

Steel buyers are “confused” as are some traders as to what deals are being offered into the hot rolled market right now. Steel Market Update has been advised by a couple of large HRC buyers of offers below $1,600 per ton ($80.00/cwt), while at the same time we have spoken to buyers who continue to be quoted $1,860 per ton. There is a disparity between mini’s, integrateds and re-rollers, and there are disparities between mills. Everything is a nice gray color in a world that appreciates black and white.

With European hot rolled potentially opening to U.S. customers now that the Section 232 issues have been resolved, we are hearing of HRC price offers out there under $1,400 per ton ($70.00/cwt). Again, as with the domestic steel mills, it seems there is a wide range of prices being discussed from Europe, Mexico, Korea and elsewhere. Where the market ultimately shakes out is still an unknown.